UPDATE: Egypt’s business digest Oct.9: Egypt bourse closes in green, EGX30 soars 0.82%
Egyptian Exchange - YOUM7


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Egypt bourse closes in green, EGX30 soars 0.82%

The Egyptian Exchange (EGX) closed Sunday’s trading session in the green zone backed by foreign and Arab investors buying activities, Youm7 reported.

The main index EGX30 went up 0.82 percent to close at 8436.82 points.

The small and mid-cap index EGX70 fell 0.24 percent to close at 352.46 points, while the broader index EGX100 edged up 0.01 percent to close at 806 points.


Yields mixed on Egypt’s T-bill auction

(Reuters) – Yields on Egypt’s three-month treasury bills dropped while yields on the nine-month treasury bills rose at Sunday’s auction, data from the central bank showed.

The average yield on the 91-day bill dropped to 14.507 percent from 14.775 percent at the previous auction on Sept 25. The 266-day bill’s yield rose to 16.415 percent from 16.394 percent at the last similar auction.


MIDEAST STOCKS-Egypt may cheer IMF loan progress; Gulf likely subdued – Reuters

(REUTERS): Investors in Egypt’s stock market may welcome news of progress toward the country obtaining a $12 billion loan from the IMF, while bourses in the Gulf may be subdued on Sunday as investors await upcoming third-quarter corporate results.

The International Monetary Fund’s initial loan payment to Egypt will be about $2.5 billion, a senior IMF official said on Friday, adding that he hoped to secure board approval for the programme within the next month. IMF and Egyptian authorities are “making good progress” on talks with China, Saudi Arabia and some G7 countries to provide about $5-6 billion in additional bilateral financing, he added.

Cairo’s index of the top 30 most valuable stocks is now up 6 percent over the last month in anticipation of positive IMF news but volumes have been modest, suggesting there is room for more investors to allocate funds to equities if there is positive news.

In the Gulf, Saudi Arabia’s Jarir Marketing, the first Saudi retailer to publish third-quarter results, posted flat third-quarter net profit and noted a drop in its non-operating expenses.

The electronics and bookstore operator made a net profit of of 220 million riyals ($58.7 million) versus 218.5 million riyals a year earlier. The company said its estimated sales for the quarter fell 1.0 percent compared to the third quarter of 2015 – a sign of the government’s austerity policies hitting consumption – but added that “the company is commited to its expansion plan despite declines in sales.”

Analysts at Riyad Capital downgraded the stock to neutral with a price target of 118 riyals per share – still well above Jarir’s last close of 82.00 riyals on Thursday.


Export Development Bank Of Egypt board approves capital increase – Reuters

(REUTERS): Board approves issued and paid capital increase by 288 million EGP to 1.72 billion EGP.


MIDEAST STOCKS-Banks drag Saudi down, rest of region sluggish – Reuters

(REUTERS): Banking shares dragged Saudi Arabian stocks lower in early trade on Sunday while markets in the rest of the region moved little as investors readied for third-quarter corporate earnings announcements.

The Saudi stock index fell 0.5 percent in the first 75 minutes as the banking index dropped 0.9 percent.

The central bank has told commercial banks to postpone for a month receiving payments on consumer loans to customers whose incomes have been hit by cuts to public sector allowances, the Okaz newspaper reported on Sunday, citing unnamed sources.

Central bank officials were not available to comment.

Telecommunications firm Zain Saudi fell 2.7 percent, continuing a pull-back after surging early last week on hopes it would benefit from deregulation of the sector.

Retailer Jarir Marketing climbed 3.1 percent after it reported a net profit of 220 million riyals ($58.7 million) for the three months to Sept. 30, up from 218.5 million riyals a year earlier. Analysts polled by Reuters had predicted 200.6 million riyals.

Dairy company Almarai gained 1.4 percent after reporting a 10 percent increase in third-quarter net profit to 654.6 million riyals. Analysts had forecast 627.8 million.

Dubai’s index was flat. The most heavily traded stock, DXBE Entertainments, climbed 1.3 percent before it opens theme park facilities at the end of this month.

Abu Dhabi’s index dropped 0.5 percent as Abu Dhabi Islamic Bank sank 1.4 percent, while Qatar was flat amid a 3.1 percent slide in Qatar Islamic Insurance .

In Egypt, the index rose 0.5 percent after a senior International Monetary Fund official said the IMF’s initial loan payment to Egypt would be about $2.5 billion and that he hoped to secure board approval for a $12 billion loan programme within the next month.

El Saeed Contracting and Real Estate jumped 4.7 percent to 0.90 Egyptian pounds after it said it was buying 17 million treasury shares at 0.96 pounds per share.

Investment firm Qalaa Holdings dropped 4.8 percent after reporting a sharply wider quarterly net loss.


Egypt, IFC sign consultancy deal to develop Red Sea port

Egypt’s Ministry of Finance signed Saturday a consultancy services agreement with the International Finance Corporation (IFC) for the development of Abu Tartour Port in the Red Sea, Youm7 reported.

The agreement was signed on the sidelines of the annual meetings of the World Bank currently held in Washington D.C.

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